Capita told investors on Sept. 29 that delayed decision-making by its customers in the wake of Britain's vote to leave the European Union would hit its 2016 profits, sending its shares down sharply.

In a monthly update on its investment performance, Woodford Investment Management- Capita's fourth-biggest investor according to Reuters data - said it had met the firm and was reassured about its outlook.

"Although the market is clearly worried about the sustainability of Capita's dividend and the prospect of a dilutive rights issue, we are confident that the dividend is safe and that an equity issue will not be required," Portfolio Manager Mitchell Fraser-Jones wrote.

"Nevertheless, this was clearly a disappointing update from the business but, as is so often the case in these situations, the market's reaction looks disproportionate," he added.

(Reporting by Simon Jessop, editing by Sinead Cruise)